Fidelity Investments has doubled its lineup of model portfolios available to financial advisors with two new income-oriented offerings, the company announced Thursday.
The Fidelity Bond Income Model Portfolio and Fidelity Multi-Asset Income Model Portfolio will employ both mutual funds and exchange-traded funds to help achieve their stated goals of generating cash and managing risk.
The use of ETFs is a new twist regarding Fidelity’s model portfolios. Last year it rolled out two target-allocation models designed to provide total returns from various asset classes via Fidelity mutual funds.
Fidelity’s new bond income and multi-asset income model portfolios will use both active and passive Fidelity mutual funds, along with ETFs from both Fidelity and third-party sources. Regarding the latter, the iShares U.S. Preferred Stock ETF (PFF) is used in both model portfolios.
The bond portfolio invests in high-yield securities, preferred stock, U.S. government and emerging-market securities. The multi-asset portfolio invests mainly in income-producing vehicles such as equity and debt securities (including common and preferred stock), U.S. government debt, high-yield debt securities, emerging-market debt and floating-rate securities.
According to Fidelity, nearly 100 advisory firms have access to its model portfolios through turnkey platforms. In addition, advisors can receive model updates directly from Fidelity.